STOCKS NEWS EUROPE-Ansaldo STS boosted by Peru contract prospect

Shares in Ansaldo STS rise 3.6 percent to the top of
Italy's mid-cap index as a consortium including the
rail signalling and transportation group emerges as the sole
bidder for a contract in Peru.

The consortium, formed by builders from Peru, Italy and
Spain, has bid for the construction of a $6.6 billion train line
in Lima, Peru's state investment agency Proinversion said late
on Friday.

"The Metro Lima contract could weigh as much as 28-34
percent of the new order intake target set by STS for 2014,"
Banca Akros says in a note.

It adds that the value of the deal pertaining to Ansaldo STS
could be worth around 480 million euros ($661.6 million).

The consortium is made up of Peruvian company Cosapi;
Italian companies Salini Impregilo, Ansaldo STS
, and Ansaldo Breda; and Spanish builders Iridium
Concesiones de Infraestructura and Vialia Sociedad Gestora de
Concesiones de Infraestructura.

Ansaldo STS and loss-making train maker Ansaldo Breda are
two units defence and industrial group Finmeccanica is
planning to sell to cut debt.

"The (Peru) news is clearly positive for STS as well as for
(Ansaldo) Breda; we believe that a similar contract might even
accelerate the STS/Breda stake disposal from the side of
Finmeccanica," Akros adds.

It estimates the rolling stock component pertaining to
Ansaldo Breda could be worth another 240 million euros ($330.78
million).

Media reports over the weekend reiterated that U.S.
industrial giant General Electric, Japan's Hitachi
, France's Thales and Canada-based Bombardier
were interested in the assets. A trader says this gave
additional support to the stock.